Thursday, June 23, 2016

Pay for proper advice and make the right choice

A young graduate was advised to buy a Term Insurance policy with a premium of $1,700 a year.

If the graduate had approached an adviser who does not earn commission on the sale, the adviser would have given her the options set out in this PDF. The information are available from the MAS Compare First website:

If you were the graduate, which option would you choose?

a) 20 year term insurance for $400,000 - $224 a year
b) 37 year term insurance for $400,000 - $338 a year
c) 37 year term insurance for $400,000 with critical illness cover - $990 a year
d) The policy recommended by the agent - $1,700 a year

Are you prepared to pay $100 to an adviser to prepare the information to help you make a proper decision and save more than $1,000 a year for the next 37 years?

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